Gas up again

Published 6:00 pm, Friday, March 17, 2006

"Maybe it is because of the war in Iraq," Castillo said Friday about the high price of gas as he topped off his tank at a cost of $200 at a Shell station on Frazier Street in Conroe.

Castillo isn't the only one theorizing about rising prices. The average price for gas in Texas is $2.34 per gallon, a rise of 7 cents per day since last week, according to AAA Texas' Weekend Gas Watch.

Houston's average price is $2.34, an almost 10 cent increase in a week.

Rose Rougeau, a spokeswoman for AAA Texas, said the reason for the most recent spike in gas prices might be blamed on the refineries, which have to switch from winter-grade fuel to a reformulated summer-grade fuel, which is mandated by the Environmental Protection Agency.

"There is a temporary reduction in production during this time," Rougeau said. "When they do this, gas prices go up."

Rougeau said refineries usually make the switch by April and will be prepared for an influx in gas consumption throughout the summer months.

Allen Spelce, the Texas Department of Agriculture's assistant commissioner for communications, said high prices at the pump make ethanol fuel, an alternative energy source made from corn, look more attractive to consumers.

"The higher you see gas prices go, the more you will see cost-feasible alternatives like ethanol," he said. "It just makes ethanol fuel look more attractive."

Belton Plake paid $2.45 a gallon Friday at the Shell station on Interstate 45 and Gladstell Road.

"They say the price goes up because of supply and demand," Plake said. "But I don't understand how it could jump more than 20 cents per gallon in two weeks. They must not have sold enough."

Plake, who was traveling to Houston with his wife and granddaughter for one last day of Spring Break freedom Friday, said he expects the price of gas to rise again as the weather continues to get warmer.

Regardless of the mounting prices, most people continue to drive, said Kathleen Feller, a mother of four.

Feller, who works in the Frisco Independent School District, said she spent $220 on gas to drive from McKinney with her children to visit her parents for Spring Break. Each time she fills up her Chevrolet Suburban, she said she pays about $80.

"It's overwhelming," she said. "We still go, though. We don't visit as much as we used to. The price to fill the Suburban up with gas is almost as much as a plane ticket."

Edward Shelton, a Conroe resident, said he expects gas prices to fall soon and remains positive about prices.

"The higher the price, the better the economy," he said.

But Alex Hassan, owner of Frazier Food Mart, said the business struggles when prices rise.

"We've done good business when prices are low," he said. "But when they are on the rise, people are spending all their dimes at the pump."

"I have to keep it low," said Hassan, revealing his marketing strategy. "I want people to come into my store and buy stuff."

Hassan said he has heard talk about oil refineries shutting down, but he can't verify the exact cause for the fluctuation.

Mahomood Ahmad, who has run the Conoco station at 931 Frazier St. for more than 20 years, said an influx of credit card use among consumers also might drive up gas prices because credit card companies charge the stations a 2.75 percent service charge for each transaction.

"Credit card companies shouldn't charge a merchant; it should be free, just like we give the service to the customer for free," Ahmad said. "It is bad for a small company. The bottom line is merchants are being crushed."